TLDR
- Bitcoin mining stocks surged Tuesday, with TeraWulf up as much as 17% and Hut 8, IREN, and Riot Platforms all closing more than 5% higher.
- The gains came as the S&P 500 hit record highs above 7,500, led by a 5.6% surge in the Philadelphia Semiconductor Index, which is now up nearly 77% this year.
- Research from Bernstein found 11 publicly traded Bitcoin miners control around 27 gigawatts of current and projected power capacity, which analysts say could be critical for AI data center demand.
- IREN signed an agreement with Microsoft that Bernstein estimates could support roughly $3.7 billion in annualized revenue for its AI cloud infrastructure business.
- Analysts warn that as large miners pivot to AI, Bitcoin network security could face concentration risks, though most view a hybrid mining and AI approach as the most likely long-term outcome.
Bitcoin mining stocks climbed sharply on Tuesday as a broader rally in semiconductor and technology shares lifted sentiment across the sector. Investors are increasingly viewing crypto miners as potential players in the AI infrastructure buildout.
Mining Stocks Catch a Bid From the Semiconductor Surge
TeraWulf led the gains, rising as much as 17% on news of a Kentucky data center acquisition. Hut 8, IREN, and Riot Platforms all closed more than 5% higher on the day.
The moves came alongside fresh record highs for the S&P 500, which crossed 7,500 for the first time. The Philadelphia Semiconductor Index jumped 5.6% and is now up nearly 77% year to date.
Investor interest in miners has been building as more companies signal plans to repurpose their power infrastructure for high-performance computing and AI workloads. These businesses are seen as potentially more stable and profitable than crypto mining alone.
Research from Bernstein found that 11 publicly traded Bitcoin miners collectively control around 27 gigawatts of current and projected power capacity. Analysts say reliable access to electricity — more than semiconductors — is becoming the key bottleneck for scaling AI infrastructure.
That dynamic puts miners in a position to serve as strategic partners for hyperscalers and AI companies looking for ready-made power and data center operations.
IREN is one example of a miner already making that shift. The company recently signed an agreement with Microsoft that Bernstein estimates could support an annualized revenue run rate of around $3.7 billion for its AI cloud infrastructure business.
Bitcoin Valuation and the Mining Pivot
While the AI pivot has lifted mining stocks, analysts at Schwab say it also raises questions about Bitcoin’s fundamentals.
Miners have historically provided a price floor for Bitcoin. When Bitcoin trades near or below the cost of production for inefficient miners, it has tended to signal downside support. Glassnode data from May 2026 puts inefficient miner production costs at around $95,000.
Bitcoin previously peaked at $126,000 before falling to around $60,000, a level that roughly coincided with the 200-week moving average and efficient miner production costs at the time.
Schwab analysts note that as large miners shift capital toward AI, the number of active Bitcoin miners on the network could decline. This increases concentration among remaining miners, which they say could theoretically raise the risk of transaction censorship or weaken network security over time.
That said, most analysts expect a hybrid model to prevail. Bitcoin mining runs 24 hours a day and can fill off-peak hours when AI inference demand is lower. Inference itself is projected to make up more than 50% of global data center demand by 2030, but that demand is concentrated during business hours.
In practical terms, analysts see miners using Bitcoin mining as a baseload activity and overlaying AI inference work during peak periods — a model that diversifies revenue and reduces the boom-bust cycles that have historically pressured the sector.
Schwab rates Bitcoin as more favored among cryptocurrencies and maintains a neutral view on Ether, while rating XRP and Solana as less favored.
On the question of government support, Schwab notes that 28 U.S. states are exploring strategic Bitcoin reserves. New Hampshire, Arizona, and Texas have already passed laws establishing them.
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